01, May 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pair continues to strengthen against the dollar on the back of a strong demand. GBP/USD reached the local three-month high point - 1.5550.

The pair failed to break through this level and went down slowly. The consumer sentiment index, as in the GfK, remained at the same level and did not affect the movement of the pair.

UK economic calendar is not eventful this week. So U.S. economic data and investor demand for pound will affect the movement of the British currency.

On Wednesday and Thursday we expect the U.S. vital statistics. This week main news is the USA interest rate. Besides there will be published a number of initial claims for unemployment benefits and the balance of foreign trade.

"Bollinger Bands" are directed upwards and sideways. It is recommended going long.

MACD is growing, the histogram is in the positive zone.

Indicators point to the northern movement of the pair.

Trading recommendations

Negative news from the U.S. may cause a growing and the pair can reach out new high points.It is also possible a roll back to the level 1.5370 (1.5350). The positive U.S. GDP data can pressure the pair.

Still while the pound is in demand we can expect it grow to the resistance 1.5410 and break trough it with the further growth to 1.5450 (1.5510).